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See how much your mutual fund expense ratio is costing you over time. Analyze the impact of fees on your long-term wealth.
12% growth
10.89% effective
Potential wealth lost due to 1% fees.
Total Investment
₹25.00 Lakh
Interest Earned
₹63.41 Lakh
Maturity Value
After 20 Years
₹88.41 Lakh
Expense Ratio is charged on your total fund value daily, not just on your contributions. It reduces your effective NAV (Net Asset Value) every single day, silently eating into your returns.
Direct Plans have lower expense ratios as they don't pay distributor commissions. Regular Plans charge higher fees (often 1-1.5% more), which goes to the agent/broker.
A small 1% fee difference might seem trivial, but over 10-20 years, it can reduce your total wealth by 20-30% due to the reverse compounding effect of fees.
Index Funds (Passive) typically have very low charges (0.1% - 0.5%). Active Funds charge higher (1.5% - 2.5%) to cover fund management expertise and research.
You can find the Total Expense Ratio (TER) in your mutual fund's monthly fact sheet or on the AMC website. It is updated periodically based on AUM size.
Switching from a Regular Plan to a Direct Plan is often the easiest, risk-free way to boost your long-term portfolio returns by 1-1.5% annually.
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